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16 Dec 2014
BOE Governor Carney says inflation expectations could fall further
FXStreet (Mumbai) - Bank of England Governor Mike Carny fired another warning shot today by stating that inflation expectations in the UK can sink further in the days ahead.
He also stated that the recent sharp fall in the oil price should support global and UK growth. It is a positive development, but it is also one that entails some risks to financial stability. Inflation expectations could be further depressed in economies, such as the euro area, where core inflation is already weak, slowing nominal income growth and increasing the burdens of debts.
His comments regarding falling inflation expectation come ahead of the UK CPI data for November which is likely to show a slowdown in price pressures.
He also stated that the recent sharp fall in the oil price should support global and UK growth. It is a positive development, but it is also one that entails some risks to financial stability. Inflation expectations could be further depressed in economies, such as the euro area, where core inflation is already weak, slowing nominal income growth and increasing the burdens of debts.
His comments regarding falling inflation expectation come ahead of the UK CPI data for November which is likely to show a slowdown in price pressures.